HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FXCM information and reviews
FXCM
87%
Vantage information and reviews
Vantage
85%

Legitimate broker or scam? Unpacking the details of OctaFX’s operation in Malaysia


22 September 2023

OctaFX has been featured in the Financial Consumer Alert List (FCA) of Bank Negara Malaysia (BNM), joining the ranks of various other brokers. Learn what this signifies for traders. In the previous year, OctaFX, along with the majority of forex brokers operating in Malaysia, found their names on the Financial Consumer Alert List (FCA) curated by Bank Negara Malaysia (BNM) and the Investor Alert List by the Securities Commission Malaysia (SC).

Why did OctaFX and other brokers make it to the alert lists?

BNM and SC clarify that these alert lists serve as public advisories to increase public awareness regarding organizations not licensed or regulated by these respective institutions. It's important to note that being listed does not directly imply that an organization, like OctaFX, is involved in scams or fraudulent activities. Instead, it signifies that they do not hold a local license.

This situation isn't exclusive to OctaFX, as other global brokers, including XM and Exness, also appear on these lists. All of them are licensed in different countries. For instance, OctaFX is regulated by the FSCA in South Africa and CySEC in Cyprus. Meanwhile, XM holds a license from CySEC and the Australian ASIC, and Exness has several licenses, from the UK's FCA to South Africa's FSCA. Yet, none of these entities possess a license from Malaysia's Securities Commission or Bank Negara.

As a matter of fact, Malaysia has no licensed Forex brokers. The Securities Commission is the lone authority granting licenses to entities desiring to engage in securities and derivatives within Malaysia. However, the sole online broker to secure the SC's capital markets services license (CMSL) is Rakuten, a collaboration between Malaysia's Kenanga Investment Bank Berhad and Japan's Rakuten Securities. Other online brokers and additional investment alternatives, such as derivative CFD and forex trading, continue to go unrecognized by the Securities Commission.

As per the SC Public Register, a mere 16 companies hold licenses for dealing in derivatives - primarily large banks that don't typically offer brokerage services—and none of them are actual online CFD brokers. This surprisingly small number suggests a dlack of opportunities and options for Malaysian investors seeking to participate in the international financial markets. Nevertheless, the Securities Commission and Bank Negara adds all international brokers into their alert lists. The lack of a license, however, predominantly impacts certain aspects of the brokers' advertising efforts, as they can still legally accept clients from Malaysia.

Legitimate broker or scam? Unpacking the details of OctaFX’s operation in Malaysia

Why is it beneficial for brokers to retain an international status?

The main reason is that it allows them to offer improved trading conditions, thereby staying competitive in the global market. Regulatory constraints and limitations set by local financial authorities can be quite restrictive, particularly when it comes to the diversity of investment instruments, trading conditions, and bonus schemes that a broker can offer. This frequently leads clients to seek brokers who can offer a broader range of instruments, superior conditions, copy trading services, and attractive promotional deals. More often than not, these brokers are international players who offer Forex and CFD trading services like OctaFX.

So, even if Forex brokers could obtain licenses in Malaysia, they may not rush to do so. This is because acquiring a local license could significantly compromise their trading conditions, leading to a loss of competitive edge against international brokers.

Is OctaFX still functioning in Malaysia?

Yes, OctaFX continues to operate in Malaysia. Being an international broker, it can accept clients from most jurisdictions worldwide, a claim evidenced by OctaFX's services spanning more than 180 countries.

However, when it comes to Forex trading, it's imperative to understand how financial markets work and apply risk management strategies in trading. Failure to do so exposes you to significant risks of monetary loss, regardless of which broker you opt for trading. Therefore, it is crucial to have a sound knowledge basis before depositing funds and venturing into investments or trading.

#source

Share: Tweet this or Share on Facebook


Related

HFM Copy Trading Revolution: Breaking Barriers and Unleashing Global Opportunities
HFM Copy Trading Revolution: Breaking Barriers and Unleashing Global Opportunities

In a groundbreaking move, global award-winning broker HFM has announced that their Copy Trading platform has transcended geographical boundaries. This development promises a new era of trading possibilities for both Followers and Strategy Providers...

6 Dec 2023

FP Markets Awarded FX Broker Licence in Kenya by the Capital Markets Authority (CMA)
FP Markets Awarded FX Broker Licence in Kenya by the Capital Markets Authority (CMA)

In a move that further reinforces its position as a truly global online Forex and CFDs broker, FP Markets has announced that it has been granted a non-dealing...

6 Dec 2023

Octa receives Most Reliable Broker Asia 2023 award at Global Forex Awards 2023
Octa receives Most Reliable Broker Asia 2023 award at Global Forex Awards 2023

The international broker Octa was recognised as the most reliable broker in Asia by public voting held by the Global Forex Awards in 2023...

5 Dec 2023

XM's Strategic Role in the 4th Annual Cairo CFO Summit 2023
XM's Strategic Role in the 4th Annual Cairo CFO Summit 2023

XM, a renowned name in the global financial sector, once again demonstrated its commitment to fostering industry growth and knowledge exchange by being the strategic partner and sponsor of the prestigious...

5 Dec 2023

FP Markets Awarded Best Forex Trading Tools 2023 by FXScouts
FP Markets Awarded Best Forex Trading Tools 2023 by FXScouts

FP Markets has again been recognised for its outstanding trading solutions, receiving the Best Forex Trading Tools 2023 award from FXScouts..

5 Dec 2023

HF Markets Enhances MT4 Offerings with New Blue-Chip Stocks
HF Markets Enhances MT4 Offerings with New Blue-Chip Stocks

HF Markets, in its quest to continually offer an enriched trading experience, has expanded its extensive product range, now boasting over 3,500 offerings. This expansion aligns with the broker's commitment...

29 Nov 2023


Editors' Picks

MultiBank Group information and reviews
MultiBank Group
84%
FP Markets information and reviews
FP Markets
83%
XM information and reviews
XM
82%
Just2Trade information and reviews
Just2Trade
80%
AMarkets information and reviews
AMarkets
78%
IronFX information and reviews
IronFX
77%

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.